Let’s dig into the relative performance of Hasbro (NASDAQ: HAS) and its peers as we unravel the now-completed Q2 toys and electronics earnings season.
The toys and electronics industry presents both opportunities and challenges for investors. Established companies often enjoy strong brand recognition and customer loyalty while smaller players can carve out a niche if they develop a viral, hit new product. The downside, however, is that success can be short-lived because the industry is very competitive: the barriers to entry for developing a new toy are low, which can lead to pricing pressures and reduced profit margins, and the rapid pace of technological advancements necessitates continuous product updates, increasing research and development costs, and shortening product life cycles for electronics companies. Furthermore, these players must navigate various regulatory requirements, especially regarding product safety, which can pose operational challenges and potential legal risks.
The 4 toys and electronics stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 4% while next quarter’s revenue guidance was 0.8% below.
While some toys and electronics stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.5% since the latest earnings results.
Best Q2: Hasbro (NASDAQ: HAS)
Credited with the creation of toys such as Mr. Potato Head and the Rubik’s Cube, Hasbro (NASDAQ: HAS) is a global entertainment company offering a diverse range of toys, games, and multimedia experiences for children and families.
Hasbro reported revenues of $980.8 million, down 1.5% year on year. This print exceeded analysts’ expectations by 11.2%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS and EBITDA estimates.
“Hasbro’s return to growth in the first half of 2025 is clear validation that our Playing to Win strategy is working,” said Chris Cocks, Chief Executive Officer, Hasbro,
Hasbro achieved the biggest analyst estimates beat and fastest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 4% since reporting and currently trades at $74.51.
Is now the time to buy Hasbro? Access our full analysis of the earnings results here, it’s free.
Mattel (NASDAQ: MAT)
Known for the creation of iconic toys such as Barbie and Hotwheels, Mattel (NASDAQ: MAT) is a global children's entertainment company specializing in the design and production of consumer products.
Mattel reported revenues of $1.02 billion, down 5.7% year on year, falling short of analysts’ expectations by 3.2%. The business performed better than its peers, but it was unfortunately a mixed quarter with a beat of analysts’ EPS estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 15.3% since reporting. It currently trades at $17.10.
Is now the time to buy Mattel? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Funko (NASDAQ: FNKO)
Boasting partnerships with media franchises like Marvel and One Piece, Funko (NASDAQ: FNKO) is a company specializing in creating and distributing licensed pop culture collectibles.
Funko reported revenues of $193.5 million, down 21.9% year on year, exceeding analysts’ expectations by 5.2%. Still, it was a slower quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Funko delivered the slowest revenue growth in the group. Interestingly, the stock is up 9.8% since the results and currently trades at $4.02.
Read our full analysis of Funko’s results here.
Bark (NYSE: BARK)
Making a name for itself with the BarkBox, Bark (NYSE: BARK) specializes in subscription-based, personalized pet products.
Bark reported revenues of $102.9 million, down 11.5% year on year. This number surpassed analysts’ expectations by 2.8%. However, it was a slower quarter as it produced a significant miss of analysts’ adjusted operating income estimates and EPS in line with analysts’ estimates.
The stock is flat since reporting and currently trades at $0.85.
Read our full, actionable report on Bark here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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